9911796707
TMI Blog2023 (7) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... and payments to be made. HELD THAT:- As due restrictions were put in place by TRA agreement, the petitioner no. 1 was not in a position to take instant and prompt decision as all payments have to be rectified by IARC. Department has not taken any stand on this and controverted this part of the averment made in the petition in its counter affidavit. As argued on behalf of the Department that this is a subject where it can be considered at the stage of trial, but the question for consideration will arise only when there is denial of the said plea of reasonable cause. The petitioner claims that the notice to deposit the amount was issued on 14.11.2017 on the basis of the sanction order dated 11.12.2017 and before issuance of the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- Quarter Form type Chln. No. Deductee Ser. No. PAN PAN ---- Due Date Date of Deposit TDS/TCS Deposited Last Payment Principal Amount Interest on Late Pmnt Date of Deduction Period of Delay (In Month) Q 1 26Q 1 1 CQAPS6200G USMA---June 2014 7-Jul-2014 14-Oct-2014 2656.00 2656.00 195.00 30-June-2014 5 Q 2 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .02.2012. One of the conditions of restructuring of the debt was that petitioner no. 1 was to open a trust and retention account (TRA) with a bank acceptable to IARC. All the receipts and payments would be routed through the TRA alone. Pursuant thereto, a TRA agreement dated 08.07.2012 entered into between petitioner no. 1, IARC and HDFC Bank Limited for the purpose of operation and maintenance of TRA. 4. In sum and substance, under the aforesaid facts and circumstances, the petitioners were tied down by the condition imposed by TRA agreement and, therefore, there was some delay in depositing the TDS amount in the Central Government. 5. The second plea is that as per the circular bearing F. number 255/339/79-IT(Inv.) dated 28.05.1980, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said amount was deposited before issuance of any show cause notice dated 16.11.2016 by the Income Tax Department. After 1 years of the deposit of amount, notice was issued. 9. The main plea for quashing of prosecution is that on the basis of CBDT guideline issued in F No. 285/90/2008/IT(Inv.-I)/05 dated 24.04.2008. Para (g) reads as under: Prosecutions under Section 276B should not normally be proposed when the amount involved, and or the period of default, is not substantial and the amount in default has also been deposited in the meantime to the Credit of the Government. No such consideration will, of course, apply to levy of interest under Section 201(1A). 10. Relying on this circular, it is submitted that there was no c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mit for according sanction u/s 279(1) Time Limit for filing prosecution complaint 1. 276B Preferably within 90 days from issue of SCN by AO TDS [CIT (TDS)] may extend the timeline for submission of prosecution proposal considering the facts and circumstances of each case] (Refer Para 4.13) Preferably within 90 days of receipt of proposal from the AO (TDS) through Range Head (excluding the additional time taken to dispose off compounding application filed, if any) [Refer Para 4.15 (g) Preferably within 30 days of receiving approval u/s 279(1) (Refer Para 4.19) 2. 276BB -do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the plea under Section 278A of the I.T. Act, can be decided on the basis of evidence which would be adduced by the parties before the competent Court. With this observation for quashing of prosecution filed was rejected by the Hon ble Supreme Court. 15. Having considered the rival submissions advanced on behalf of the parties and perusing the materials available on record, it is apparent that there has been delay in depositing the TDS amount. 16. The short question falls for consideration in the instant petition is that whether the petitioner has made out its case under Section 278AA of the Act that he was prevented by sufficient cause for depositing such amount to the credit of the Central Government? 17. A specific plea has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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